EMU regents approve state appropriation request for fiscal year 2007

YPSILANTI - The Eastern Michigan University Board of Regents approved a fiscal year 2007 appropriation strategy at a special meeting, Oct. 21.

EMU’s estimated fiscal year 2007 general fund expenses total $220,042,252. EMU is asking for a higher education Consumer Price Index increase of 3 percent, or $2.3 million in its state appropriation. Even if the state grants the request, EMU would be forced to increase tuition and fees by at least 4 percent to balance the University’s 2007 budget.

“Despite our cuts of more than 180 positions and more than $36 million in the base budget, we still need additional state assistance to keep up with rising costs,” said Steve Holda, interim director of business and finance for EMU. “We have a $7.6 million gap between what costs were last year and what they are forecast for fiscal year 2007.”

Most of the $7.6 million needed, about $4.4 million, would go to cover rising costs in health care and faculty and staff compensation. The balance of the $7.6 million gap relates to rising utility costs ($1.2 million), increasing student scholarships and financial aid ($1.3 million), and retiree health care costs related to Michigan Public School Employees Retirement System ($508,000).

“The entire University community has been working together to try to offset these costs, but decreases in state appropriations and rising contractual costs continue to outpace our best efforts,” Holda said.

The state of Michigan has cut appropriations to higher education for the past three years. EMU has not received a base budget increase since fiscal year 2002.

Despite having the state’s sixth largest university enrollment, EMU ranks 10th in state appropriation per student among the 15 public universities in Michigan.

EMU’s fiscal year 2006 appropriation was $76.1 million, approximately equal to what it received from the state in 1998. The per-student appropriation of $3,889 for fiscal year ’06 is almost $300 less per student than it was in 1997 and almost $900 less per student than in 2002. State appropriation comprises less than 36 percent of EMU’s General Fund Operating Budget.

Eastern Michigan University is a public, comprehensive university that offers programs in the arts, sciences and professions. EMU prepares students with the intellectual skills and practical experiences to succeed in their careers and lives, and to be better citizens.

###

Eastern Michigan University is a public, comprehensive
university that offers programs in the arts, sciences and professions.
EMU prepares students with the intellectual skills and practical experiences
to succeed in their career and lives, and to be better citizens.